The adoption of augmented reality (AR) in online food delivery is long overdue, and will play an important role in the future of work across the foodservice industry. With the takeaway operator selling price expected to reach $1,195 billion by 2026, specialists have a real opportunity to improve their platforms and services with a unique offering complemented by AR. However, due to the high cost of the technology, it will be restricted to large quick-service restaurant brands.
The applications for AR in the foodservice industry are endless. Brands such as McDonald’s, Panera Bread, and Pizza Hut have demonstrated that incorporating AR into media strategies can drive brand exposure. As lifestyles become increasingly digital and issues such as the COVID-19 pandemic and environmental, social, and governance (ESG) remain important to businesses, investment in AR technology can help companies to address the modern consumer.
AR is a technology that allows the user to see the real world overlaid with digital data. Worth $7 billion in 2020, the AR market will generate revenues of $152 billion by 2030, according to GlobalData forecasts. In its latest thematic report, ‘Augmented Reality in Foodservice 2022’, GlobalData notes that foodservice brands investing in AR will provide exposure and engagement in the metaverse.
Jemima Walker, Analyst in the Thematic Team at GlobalData comments: “AR is also an enabling technology for the metaverse, so it will be vital for foodservice companies looking to explore this emerging mega-theme. It’s not clear whether the metaverse will live up to the hype, but there is a possibility that it could become the next big marketing channel. Many restaurant-service companies are already using the metaverse for marketing purposes. For example, Chipotle has opened a virtual store on Roblox’s gaming platform and McDonald’s set up a Lunar New Year exhibition in the metaverse.”
Although the lack of AR in the online food delivery sub-sector might bring into question whether the cost of the technology is worth it, companies such as Just Eat, HelloFresh, and DoorDash should keep an eye on AR as a potential competitive differentiator in the future. McDonald’s might be two steps ahead, with its latest metaverse-related patent applications including a metaverse restaurant, in which consumers can experience the surroundings and order food to their home.
Specialist AR vendors in the foodservice industry, such as QReal (formerly known as Kabaq.io), can create ultra-realistic virtual 3D models of menu items, already deployed in AR menus at on-site premises or for filters on social media apps. Online food delivery specialists could partner with these vendors, incorporating the AR content on delivery platforms and allowing consumers to view menu items at home.
AR will play an important role in the future of foodservice work
Adoption of AR in the workplace has been very slow across the foodservice industry. The few existing use cases are primarily for remote collaboration, spurred on by COVID-19 restrictions and the changing nature of working practices.
Wendy’s is the leading adopter of AR for enterprise use in the restaurant service sub-sector, announcing a three-year trial of AR smart glasses in partnership with NSF EyeSucceed in 2020. Meanwhile, Sodexo is the leading adopter among suppliers, launching its pilot program in 2020 to support remote and isolated sites.
Walker concludes: “Foodservice companies deploying these solutions will see greater operational efficiency and improved profit margins. However, while the cost of AR headsets and smart glasses remains high, adoption will be restricted to large quick-service restaurants (QSRs) and foodservice suppliers that have both the financial capabilities and the demand necessary for success.”
